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Biotech / Medical : Biotech Valuation
CRSP 48.91+1.2%3:58 PM EST

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To: scaram(o)uche who wrote (2073)11/21/2000 1:12:32 AM
From: John Metcalf  Read Replies (1) of 52153
 
"cash in, garbage out"

This is the Murphy Method, and it values profligacy and excellence at par with each other.

A company is not necessarily worth whatever it has spent over the years, ala XOMA. There needs to be an appraisal method for IP, because cost may have multiplied to current value, or may have been entirely wasted. Certain folks on SI have been very successful at appraisal by identifying value from early clues. No matter how long accountants debate the issue, I don't expect them to ever have a widely supported appraisal method.
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